Question

why did European trading companies set up trade Centre in coastal areas?

Answer 1

European trading companies set up trade centres in coastal areas so that they can export goods from India at cheaper rates and sell them in their country at high prices. 
The coast sea routes also made the trade easier and convenient. 
The goods that were traded through sea included handlooms, saltpeter, spices, etc.

Answer 2

European trading companies set up trade center in coastal areas so that they can export good from india cheaper rates and sell them in their country at high prices. The coast sea routes also made the trade easier and conenient. The good that were traded through sea included handlooms,saltpeter,spices etc.